Nok Airlines stocks nosedive as SET delisting threat soars
Low-cost carrier Nok Airlines stands on the brink of being delisted from the Stock Exchange of Thailand (SET). This possibility stems from the airline’s failure to improve its financial performance and submit its 2022 financial results within a given timeframe, as stated by the Thai bourse.
The SET identified Nok Airlines as a potential candidate for delisting, given that the company’s equity has remained in the negative for two consecutive years and it has been unable to rectify the cause leading to a potential delisting. According to the SET’s statement, the airline has until September 8, 2024, to correct this.
Nok Airlines is also under scrutiny for not submitting its financial statements within the designated period. The bourse has given a deadline of October 2, next year for the company to comply, failing which it could face delisting, reported Bangkok Post.
SET regulations allow listed companies a grace period of three years to rectify causes for delisting and an additional two years to meet the qualifications required to resume trading.
“If the listed company cannot eliminate the causes of delisting or repossessing the required qualifications in order to resume trading within the specified periods, the SET will consider delisting the securities of the company accordingly.”
On August 31, Nok Airlines informed the SET about a delay in the submission of its financial statements and those of its subsidiaries for December 31, 2022. The carrier stated that this delay from August 31 to September 30 of the current year was due to data reconciliation in the inventory system software and the review of the stock balance by the auditor.
The airline explained that it needed more time to meticulously review the inventory account recording and ensure data accuracy.
As per SET data, Nok Airlines reported a net loss exceeding 1.4 billion baht in 2021. This was on the heels of the substantial loss of 7.99 billion baht in 2020, as revenue dropped to 6.35 billion baht from 6.73 billion baht. The carrier also incurred losses during 2017-19, amounting to 1.85, 2.78, and 2.05 billion baht, respectively.
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